Modifications etc. (not altering text)
C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Textual Amendments
F1Words in s. 537(1) cross-heading substituted (with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 5; S.I. 2007/949, art. 2
(1)This section gives general conditions for making contribution allowances under [F2Parts 2F4... and 5].
(2)The general conditions are that—
(a)a person (“C”) has contributed a capital sum to expenditure on the provision of an asset,
(b)the expenditure would (ignoring section 532(1))—
(i)have been regarded as wholly incurred by another person (“R”), and
(ii)if R is not a public body, have entitled R to allowances under Part 2F5... or 5 or to allocate the expenditure to a pool under Part 2, and
(c)C and R are not connected persons.
(3)In this section “public body” means the Crown or any public or local authority in the United Kingdom.
(4)In this Chapter “relevant activity” has the meaning given by section 536(5).
Textual Amendments
F2Words in s. 537(1) substituted (with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 5; S.I. 2007/949, art. 2
F3Words in s. 537 heading omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 8(c)
F4Words in s. 537(1) omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 8(a)
F5Words in s. 537(2)(b)(ii) omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 8(b)
(1)This section is about contribution allowances under Part 2 and applies if—
(a)the general conditions for contribution allowances are met, F6...
[F7(aa)C's contribution is to expenditure on the provision of plant or machinery, and]
(b)C’s contribution is made for the purposes of a trade or relevant activity carried on, or to be carried on, by C.
(2)C is to be treated for the purposes of allowances under Part 2 as if—
(a)the contribution were expenditure incurred by C on the provision, for the purposes of C’s trade or relevant activity, of the [F8plant or machinery],
(b)C owned the [F9plant or machinery] as a result of incurring that expenditure at any time when R owns it or is treated under Part 2 as owning it, and
(c)the [F10plant or machinery] were at all material times [F11plant or machinery] in use for the purposes of C’s trade or relevant activity.
(3)Expenditure treated as incurred under subsection (2)(a), if allocated to any pool, must be allocated to a single asset pool.
(4)Subsections (5) and (6) apply for the purposes of contribution allowances under Part 2 if the whole or a part of the trade or relevant activity for the purposes of which C’s contribution was made is transferred.
(5)If the whole of the trade or relevant activity is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor.
(6)If a part of the trade or relevant activity is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor to the extent that they are properly referable to the part transferred.
Textual Amendments
F6Word in s. 538(1)(a) omitted (with effect in accordance with s. 73(4)-(6) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 73(2)
F7S. 538(1)(aa) inserted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(2)
F8Words in s. 538(2)(a) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(a)
F9Words in s. 538(2)(b) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(b)
F10Words in s. 538(2)(c) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(c)(i)
F11Words in s. 538(2)(c) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(c)(ii)
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Textual Amendments
F12S. 539 omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 9
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Textual Amendments
F13S. 540 omitted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 27 para. 10
(1)This section is about contribution allowances under Part 5 and applies if—
(a)the general conditions for contribution allowances are met, and
(b)C’s contribution is made for the purposes of a trade carried on, or to be carried on, by C.
(2)C is to be treated for the purposes of allowances under Part 5 as if—
(a)the contribution were expenditure incurred by C on the provision, for the purposes of C’s trade, of an asset similar to that provided by means of C’s contribution, and
(b)the asset were at all material times in use for the purposes of C’s trade.
(1)Subsections (2) and (3) apply for the purposes of contribution allowances under [F15Part 5] if—
(a)C’s contribution was made for the purposes of C’s trade F14..., and
(b)the whole or a part of the trade F14... is subsequently transferred.
(2)If the whole of the trade F14... is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor.
(3)If a part of the trade F14... is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor to the extent that they are properly referable to the part transferred.
Textual Amendments
F14Words in s. 542 repealed (31.1.2013) by Statute Law (Repeals) Act 2013 (c. 2), s. 3(2), Sch. 1 Pt. 10 Group 1
F15Words in s. 542(1) substituted (with effect in accordance with Sch. 27 para. 30(1) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 11
A person who contributes a capital sum to expenditure incurred by another person on dredging is to be regarded for the purposes of Part 9 as incurring capital expenditure on that dredging.